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The Oracle of Omaha is looking north of the border for investment opportunities. Last week, Warren Buffett revealed through a regulatory filing that he has accumulated a stake of 17.8 million shares in Canada’s largest energy producer Suncor Energy Inc. (USA) (NYSE:SU). Yet in spit of shares rising sharply in recent months, it’s not too late to follow Buffett into this high quality oil and gas company.

There’s a new sheriff in townAbove all Warren Buffett demands that his business managers be good allocators of capital. In this respect, Buffett likes what he sees in Suncor Energy Inc. (USA) (NYSE:SU)’s new chief executive Steve Williams. Mr. Williams is shifting away from his predecessor’s aggressive growth philosophy in favor of creating a more disciplined company.

Among Mr. William’s first acts was to abandoned his predecessor’s production target of one million barrels of oil equivalent per day by the year 2020. Management followed this up by scrapping its $11.6-billion Voyageur Upgrader plant and selling $1 billion worth of conventional natural gas properties as these investments didn’t provide sufficient returns for shareholders.

Rather than bold projects, Suncor Energy Inc. (USA) (NYSE:SU) is looking for cost effective growth. Williams is targeting to grow production by 100,000 barrels of oil per day over the next three to four year through de-bottlenecking initiatives – industry slang for wringing out the kinks in its operations. The benefit of these types of projects is that they can produce high returns on investment with relatively low risk.

It’s a complete shift from the Suncor Energy Inc. (USA) (NYSE:SU) of old, Williams is no longer interested in growth for growth sake but rather maximizing shareholder value.

Brighter days ahead for the oil sandsOn top of this positive development at Suncor Energy Inc. (USA) (NYSE:SU), the prospects for the entire oil sand industry is starting to brighten. Earlier this year a shortage of pipeline capacity resulted in Canadian Western Select to trade at a $40 per barrel discount to West Texas Intermediate. But today, that discount has narrowed sharply as Canadian oil finds new ways to access the market.

Rail has emerged as a key player in this respect. Canada will export 200,000 barrels per day to the United States by the end of 2013. That’s four times more than the average 46,000 barrels per day shipped in 2012.

Meanwhile Enbridge Inc (USA) (NYSE:ENB), responsible for transporting two thirds of Canadian oil exports to the United States, has been silently expanding its capacity. Some of the company’s major initiatives include twinning its Seaway and Spearhead pipelines, eliminating bottlenecks in the Chicago area, and reversing its Line 9 route. Management projects that these efforts will boost Canadian oil exports by more than one million barrels per day by 2015.

And while pipeline routes appear blocked to the west and the south, TransCanada Corporation (USA) (NYSE:TRP)announced earlier this month that it will proceed with its Energy East proposal. If approved, the pipeline will ship 1.1 million barrels per day from terminals in Alberta to refineries on the Canadian east coast by 2018. The project already has the support of oil producers but still needs approval from the National Energy Board and several provincial governments. But if given the green-light, Energy East will single handedly replace the controversial Keystone XL pipeline.

The bottom line is that Canadian crude will access the market. That bodes well for both Suncor Energy Inc. (USA) (NYSE:SU) and other oil sand players.